Tax Rebates & Refunds

Four easy steps to calculate tax refunds

September 20, 2010
Posted in Tax Rebates — Written by Chris

Any person who knows their exact annual income and the amount of tax paid in the financial year can calculate any tax refund. You are entitled to a refund only if

1. You have overpaid
2. You have earned below the tax free threshold.
3. You have paid yearly taxes but are leaving the country or your job before the completion of the year

Here are four easy steps to calculate a tax refund:

Add up your earnings

Add your earnings for the financial year that you want to claim your tax rebate for. Next, have a look at your total tax contribution for the year. As the rebate can be claimed only after the completion of a year, one cannot calculate it before then. It can be claimed before the year completes only if you are leaving the country.

Taxable income should be calculated

To calculate the tax refund, one needs to calculate the taxable income first. You can do so by subtracting income tax allowance from gross income. The personal income tax allowance is denoted by the tax code.

Tax band determination

Determining your tax band helps to calculate any tax rebate. Depending on various factors, taxes are deducted at different percentage rates.

The easiest way – use an online calculator

Online tax refund calculators will let you know the exact tax refund you are entitled to. These calculators are free and give accurate results just by entering a few required details about your yearly income.

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